Blackstone Buys Hughes Center in $347M Deal

One of larger real estate deals to grace the city of Las Vegas in recent years was confirmed by a number of outlets after reports that the Hughes Center had been sold flooded the media. The large office park was acquired by the Blackstone Group for a whopping $347 million, thereby single-handedly injecting the city’s office market with a good shot of adrenaline.

In one of Las Vegas’ largest recent trades, an affiliate of the Blackstone Group has acquired the 1.5 million-square-foot Hughes Center for $347 million.

The seller, Crescent Real Estate Holdings, is a Wall Street investment firm owned by Barclay Capital and Goff Capital Partners, according to VegasINC.com.

Located on Howard Hughes Parkway between Flamingo Road and Sands Avenue, Hughes Center offers 1.4 million square feet of office space. Equity Office, a Blackstone company, will oversee management and leasing for the property. Colliers International will stay on as leasing agent.

The hospitality facility at the office park is the Residence Inn Las Vegas Hughes Center (pictured), a Marriott-operated extended stay hotel offering 256 suites and 1,500 square feet of meeting space. The office component has an occupancy rate of around 78 percent, but the property is still recovering from the recession. As VegasINC reported, vacancy was 2.3 percent when Crescent acquired the property a decade ago.